TREASURY BEARER BONDS AUCTION ANNOUNCMENT

THE BANK OF SIERRA LEONE ANNOUNCES THE SALE OF TREASURY BEARER BONDS TO THE FACE VALUE OF LE6,951,800,000.00 (SIX BILLION, NINE HUNDRED AND FIFTY-ONE MILLION, EIGHT HUNDRED THOUSAND LEONES ONLY) THROUGH AN AUCTION SYSTEM ON FRIDAY 21ST DECEMBER 2007. BIDS ARE THEREFORE INVITED IN SPECIFIC INTEREST RATES. THE BONDS WILL BE ISSUED ON FRIDAY 21ST DECEMBER 2007 TO MATURE ON FRIDAY 19TH DECEMBER 2008. APPLICATIONS SHOULD BE LODGED THROUGH ANY COMMERCIAL BANK OR DISCOUNT HOUSE IN THE COUNTRY FOR A MINIMUM AMOUNT OF LE50,000. BIDS CAN BE SUBMITTED FOR HIGHER AMOUNTS IN MULTIPLES OF LE50,000.

INVESTORS WISHING TO REINVEST PROCEEDS OF THEIR BOND HOLDINGS MATURING FRIDAY 21ST DECEMBER 2007 CAN DO SO BY SUBMITTING SUCH MATURING BONDS TO THEIR BANKERS NOT LATER THAN TWO WEEKS PRIOR TO THE DATE OF MATURITY.

THE MARKET OPENS ON TUESDAY 11TH DECEMBER 2007 AND CLOSES ON WEDNESDAY 19TH DECEMBER 2007. THE BONDS HAVE A FIXED MATURITY PERIOD OF 12 (TWELVE) MONTHS BUT INTEREST IS PAID QUARTERLY. CUSTOMERS MAY DISINVEST AT ANY TIME THROUGH THE COMMERCIAL BANKS AND DISCOUNT HOUSE(S).

Policy & Domestic Debt Division
Banking Department
Bank of Sierra Leone